< PreviousSustainability Goals and Stakeholder Engagement In FY2021, NIPSEA Group finalised and set medium-term sustainability targets across 7 “High-Priority” material topics where we can create the most impact. We first conducted a peer benchmarking assessment against seven industry peers that are comparable in terms of material topics and priorities to evaluate our current performance within the paint industry and allow us to set strategic targets. Next, we analysed the quality of targets set by the selected peers across the 7 “High-Priority” topics using the SMART Framework. Based on the SMART analysis of the seven selected industry peers, we developed and finalised 11 targets, which were subsequently mapped to relevant United Nations Sustainable Development Goals (“UN SDGs”) and ultimately approved by the Board. Stakeholder Engagement We regularly connect with our stakeholders through various engagement mechanisms. In doing so, NIPSEA Group stays ahead of the challenges encountered and alongside trends occurring in today’s increasingly complex sustainability landscape. The table on the right also lists the frequency in which different stakeholder groups are engaged using each method. Employees Customers Suppliers Investors Government and Regulators Business Partners NGOs and Industry Groups Internal Communication channels Teambuilding activities Employee welfare reviews Client meetings Forums, seminars, and conferences Customer service surverys Site audits Sustainability performance questionnaires Tender process Shareholder meetings Planning with Board and senior management committees Shareholder sustainability performance surveys Compliance review and audits Collaborative projects Forums, seminars, and conferences Client meetings Customer service survey Sustainability performance questionnaires Performance outcome surveys Collaborative projects Sustainability performance questionnaires On a regular basis On a regular basis On a regular basis On a regular basis On a regular basis Annually Annually Annually As and when needed Quarterly Quarterly Annually As and when needed As and when opportunities arise As and when opportunities arise On a regular basis Annually Annually Annually As and when opportunities arise Annually GRI 305 Emissions GRI 404 Training and Education GRI 416 Customer Health and Safety GRI 203 Indirect Economic Impacts GRI 403 Occupational Health and Safety Emissions Intensity (GRI 305-4) Average Hours of Training Per Employee (GRI 404-1) Assessment of the health and safety impacts of products and service categories (GRI 416-1) Initiatives in Innovation (non-GRI metric) Infrastructure investments and services supported (GRI 203-1) Dollar value of investments into community initiatives (non GRI metric) Number of Fatalities and Work-Related Injuries (GRI 403-9) Occupational Health and Safety Management System (GRI 403-1) Reduce GHG emissions intensity (Scope 1 and 2) by 15% by 2025 against a 2021 baseline, with a yearly reduction target of 4%). Increase average employee training hours by 20% by 2025 against a 2021 baseline, with a yearly improvement target of 5%. Assess the health and safety impacts of at least 80% of significant products and service categories by 2025. Develop a definition for “sustainably advantaged products” to classify products and services, and establish a baseline for revenue generated from “sustainably advantaged products” in 2022. Make a meaningful impact on the lives of at least 10 million individuals across the three main pillars - Education, Empowerment and Engagement - under the strategic CSR Framework from 2019 to 2025. Invest at least US$5 million to CSR initiatives each year to make a meaningful impact aacross the 3 main pillars – Education, Empowerment and Engagement – under the strategic CSR framework. Achieve zero cases of recordable work-related injuries. Ensure that the OHS management system adheres to the latesst versions of international OHS standards (i.e., ISO 45001:2018 and OHSAS 18001). GRI 302 Energy GRI Water and Effluents Energy Intensity (GRI 302-2) Water Intensity (non-GRI metric) Reduce energy intensity by 8% by 2025 against a 2021 baseline, with a yearly reduction target of 2%. Reduce water intensity by 8% by 2025 against a 2021 baseline, with a yearly reduction target of 2%. PAINTING THE WAY FORWARD BEYOND COATINGS BEYOND ASIA 1716 NIPSEA LFG SUSTAINABILITY REPORT 2021 Material TopicsUN SDGs Sub-categories TargetsStakeholders Engagement Mechanisms Frequency of EngagementChapter 3 NIPSEA GROUP’S FOCUS 18 NIPSEA LFG SUSTAINABILITY REPORT 2021PAINTING THE WAY FORWARD BEYOND COATINGS BEYOND ASIA 19PEOPLE Harnessing the collective genius of our valued employees Our people are the key driving force towards ensuring NIPSEA Group’s long- term success and growth. We endeavor to support and strengthen them in their professional and personal development through means of providing diverse opportunities for career advancement and ensuring an inclusive work environment that fulfils their needs. PAINTING THE WAY FORWARD BEYOND COATINGS BEYOND ASIA 2120 NIPSEA LFG SUSTAINABILITY REPORT 2021 People Development Our people-first approach lies at the heart of our sustainable business strategy. We strive towards being a workplace of choice which attracts and retains young talent, professionals, and industry experts by emphasising three core dimensions targeted at developing our employees. Doing so ensures that NIPSEA Group continues to remain driven by our immensely skilled talent pool. In turn, this helps us leverage emerging business opportunities and manage challenges that arise from an ever-changing business landscape. Fair Employment Practices Training & Education Workplace Safety & Well-BeingPursuing Continuous Training & Education NIPSEA Group is committed to ensuring that all employment policies and practices are aligned with the guidelines established by local authorities. We take pride in advocating for a diverse and inclusive workforce that encompasses different genders, generations, nationalities, and expertises across countries working collaboratively to produce better business outcomes for both our customers and the communities that we operate in. By including and valuing our multi-generational workforce for their years of valued experience, we also look towards offering re-employment contracts to employees before their retirement date approaches for the opportunity to mentor the next generation of employees. In FY2021, the Group’s new hire rate measured 26.0%, which was higher compared to 2020. On the other hand, the Group’s turnover rate was 18.7%, which was also higher than last year’s number due to an increasingly competitive job market. At NIPSEA Group, we adopt a group-level learning framework that ensures the holistic development of our employees through upskilling their capabilities and competencies required at differing job levels. Training and educational programmes are uniquely tailored at the country level depending on the needs identified from our annual training needs analysis. NIPSEA Group’s provision of diverse training and educational programmes ranges from technical to leadership upskilling to better equip our employees with the necessary skills in today’s ever-evolving business landscape. In FY2021, we clocked a total of 387,243 hours for our employees, with an average of 15.0 hours per employee. In the event of operational changes that may affect our employees, the notice period given differs among different entities under NIPSEA Group, with most entities providing a notice period of 1-3 months. A longer notice period may also be applied depending on the seniority of the employee within NIPSEA Group. PAINTING THE WAY FORWARD BEYOND COATINGS BEYOND ASIA 2322 NIPSEA LFG SUSTAINABILITY REPORT 2021 Furthermore, the proportion of senior management hired from local communities measured at 57.1%. Hiring local talents in the countries we operate in is critical to developing a competitive edge in capturing market share whilst creating job opportunities in these markets. To ensure that our employees are well-supported, we offer a wide range of benefits during their term of employment which may vary by country. This includes: In FY2021, we increased our employee training hours by as compared to FY2020’s training hours. Return to work rate of employees that took parental leave Male Female Retention rate of employees that took parental leave 99.4 % 89.3 % 94.7 %88.4 % >13% •Group Term Life Insurance •Medical Coverage (inpatient and outpatient care, private or specialist treatment, treatment for personal accidents, etc.) •Paid Parental Leave •Retirement Provision (provident fund, social insurance, retirement pay-out, etc.) •Allowances (performance bonuses, meal, and transport reimbursements, etc.) Average Training Hours Per Year, Per Employee Category Average Training Hours Per Year, Per Employee Category MaleFemale Management Executives & Supervisors Rank & File 24.7 hours 20.2 hours 12.9 hours In FY 2021, the proportion of senior management hired from local communities measured at 57.1% 15.4 hours 14.8 hoursEmphasising Workforce Safety and Well-Being Employee safety is NIPSEA Group’s number one priority and we place great emphasis on the physical and mental well-being of our people. We achieve this through the enforcement of safe behaviours and the provision of good health and working conditions under local laws and regulations, as well as the Group’s Quality, Environment, Safety and Health (“QESH”) protocol. These policies form the health and safety foundation that governs actions within the Group, including the interactions we have with our suppliers, customers, or any other related third party. Occupational health and safety committees, chaired directly by Senior Management, oversee the management of workplace safety. Preventing Work-Related Incidents Our occupational health and safety (“OHS”) system measures focus on the prevention of safety and hygiene hazards that could potentially arise from crucial manufacturing and operational activities such as chemical use and storage, production and manufacture of paints and allied products, waste disposal machine use, or forklift truck use in factories. We adhere to international safety management systems to facilitate compliance and continuous improvement of safety standards across our operations, in particular, OHSAS 18001 and ISO 45001:2018. If an entity does not certify to the above two standards, it will adhere to the safety management systems of NIPSEA Group instead. We ensure that our health, safety, and environmental (“HSE”) efforts cover the following areas: 1 2 3 4 5 Raising employee awareness on the importance of health and safety measures Objective and target setting on key HSE performance indicators (“KPIs”) Regular reviewing of HSE performance Resource planning for HSE implementation, maintenance, and improvement Availing grievance mechanisms NIPSEA Group utilises a variety of communication tools to raise employee awareness of health and safety measures, as well as the roles and responsibilities of top Management, the HSE committee, Heads of Departments, and employees themselves. We also ensure that employees are well-informed on the relevant HSE precautions through workshops and briefings held on subject matters like chemical and PPE safety, machine use, and lifesaving and occupation first-aid techniques that are taught by internal or external professionals. A customised training calendar is developed annually for each site based on competency assessments held specific to work scope activities, site hazards, and safety standards. At select sides, occupational health centres are equipped with 10 trained first-aid providers and medical essentials where immediate assistance can be provided in the event of emergencies. Objectives and targets are planned and monitored on a regional database to ensure that we continuously work towards our KPIs. This database also contains industry best practices and recommended solutions to common difficulties encountered. Yearly management review meetings and monthly occupational health and safety board meetings are organised to review HSE performance and allocate responsibilities to oversee potential areas for improvement where necessary. To ensure that HSE performance is either maintained or improved, we allocate budgets for special talents, human resources, and research and development. These budgets oversee business activities such as conducting safety inspections, permit- to-work systems, training programmes, safety checklists, response plans, and investigations. In alignment with the Union’s requirements, grievance channels are availed to all employees in the form of email, face-to-face opportunities with the safety department or even abnormal or near-miss applications to report irregularities or hazardous conditions. In relation to the reported issue, employees are permitted to stop work until precautionary steps are taken. 24 NIPSEA LFG SUSTAINABILITY REPORT 2021PAINTING THE WAY FORWARD BEYOND COATINGS BEYOND ASIA 25 Taking Proactive Corrective Action In the event of a potential safety hazard is being highlighted, the OHS team will commence investigations into the reported incident. We ensure that employees involved in the reporting of the incident will not be penalised. If necessary, findings will be shared with the Safety Committee during monthly management meetings with precautionary action taken to deter recurrences. The Safety Committee comprises both management and employee representatives to enable collaborative discussions. These incidences would also be shared at bi-annual town-halls and would be included in HSE training materials as case studies. In our activities, we manage workplace hazards through effectively tracking and monitoring performance, operational control, and compliance to standards through diverse processes. These include: All employees (including contractors) Contractors only Number of fatalities as a result of work-related injury Rate of fatalities as a result of work-related injury per 200,000 hours worked Number of high-consequence work-related injuries (excluding fatalities) Rate of high-consequence work-related injuries (excluding fatalities) per 200,000 hours worked Number of recordable work-related injuries Rate of recordable work-related injuries per 200,000 hours worked 3 0.01 40 0.17 118 0.51 2 0.05 12 0.33 16 0.44 In FY2021, we report cases of recordable work-related ill health 0 Monitoring Activities Conducting Risk Assessments Encouraging Employee Participation Conducting External & Internal Audits This includes hazard assessments, evaluations, line and professional self-assessments, peer reviews, third-party validation testing, and internal audits. In addition, the assessment of control postures and subsequent reports generated help inform us of key measurements, process owners, control points, validation testing, and action plans for any corrective actions required. Persons leading safety related activities are trained by certified training institutions to assess workplace risks using a 5x5 risk scoring matrix or a Fine-Kinney method. In response to these assessments, action plans are developed to tackle considerable risks for compliance obligations while leveraging on opportunities for continual improvement. At NIPSEA Group, we advocate a consultative approach in encouraging employees to openly voice safety concerns or propose ideas to enhance existing HSE policies or programmes. Their feedback is mostly garnered through channels such as an annual employee survey, safety suggestion boxes, open discussions on social media platforms, or notice boards. We carry out a NIPSEA Group corporate-guided safety diagnosis and engage third-party companies to conduct surveillance audits to ascertain that our OHS standards are regularly re-certified.Improving Health and Wellness at the Workplace 26 NIPSEA LFG SUSTAINABILITY REPORT 2021PAINTING THE WAY FORWARD BEYOND COATINGS BEYOND ASIA 27 NIPSEA Group organises Employee Total Wellness programmes comprising e-courses and workshops to support employees holistically, covering topics such as mental health and physical wellness. However, ensuring employee health and wellness goes beyond just what occurs in the workplace at NIPSEA Group. We also organise recreational clubs that encourage employees to unwind and enjoy a variety of activities together ranging from sporting events to arts, music, and CSR-related activities. As the nature of operations varies per country, a range of medical services are also made available to our employees, such as health counselling and an annual in-house health check-up for all employees. Moreover, employees can seek treatment at a list of panel clinics and select employee groups that work with hazardous chemicals are frequently scheduled to receive health check-ups. In FY2020, we set up a NIPSEA Safety and Sustainability Council (“NSSC”) to lead safety audits and ensure that safety standards are adhered to across all Group factories. NSSC meetings are held quarterly with the HSE managers of respective factories to discuss safety targets, workplans, and sharing of updates or latest best practices. In September 2021, we launched the NIPSEA Online Incident Reporting System. Incidents can now be instantly reported using the webpage or App version of the system. Reports will be automatically shared with the NSSC members. This reporting system also allows for further analysis of reported incidents to provide the NSSC members with the insights needed to take effective preventative measures in the future. ENVIRONMENT Achieving a sustainable future for people and nature NIPSEA Group believes that businesses should play a key role in conserving natural resources and protecting our planet. We are committed to meeting our environmental targets and working towards a more sustainable future for all.28 NIPSEA LFG SUSTAINABILITY REPORT 2021PAINTING THE WAY FORWARD BEYOND COATINGS BEYOND ASIA 29 Key Environmental Aspects NIPSEA Group strives to incorporate sustainability initiatives within our operations and work with our key stakeholders such as our people, suppliers and customers to minimise our environmental impact. Our environmental approach focuses on six key aspects where we can drive progress and advance our environmental agenda. 1 6 2 3 4 5 MaterialsWater EnergyWaste EmissionsSupplier Engagement In seeking to increase circularity within our production processes, we strive to improve our recycling practices and lower the overall material intensity of our processes. We are currently trialing the use of recyclable pallets embedded with digital technology to provide analysable data that would advance our efforts to shift away from the current non-recylable wooden pallets. To reduce the amount of Volatile Organic Compounds (“VOCs”) as compared to our current oxidation methods, we are collaborating with research centres to develop non-burn technology through electrolysis. In parallel, to reduce VOC volatilisation, we continue to optimise our product composition towards water-based and solvent-free paint products. This involves investing in treatment facilities to improve our technological capabilities in recycling and reusing unavoidable VOCs. We are co-developing better wastewater recycling systems with our industry partners to achieve zero discharge to the environment. This includes looking into the reuse of treated wastewater, enhancing wastewater treatment activities, and even into sanitisation levels of the wastewater that leaves our plants. To ensure that waste material from our factories does not contribute to land pollution in surrounding areas, we implement lifecycle land assessments in key factories, coupled with regular periodic checks. Throughout our supplier management process, we consider factors such as environmental protection and sustainable development. In China, we ensure that our factories adhere to local “green factory” accreditation guidelines on production and logistical matters. This ensures that our supplier actions are accounted for and continue to uphold the “green standard” required. Materials Energy & Emissions Water Waste Supplier Engagement NIPSEA Group’s Environment Focus HighlightsResponsible Material Use NIPSEA Group aims to adopt more sustainable approaches to material usage throughout our operational processes without compromising process efficiency. Our material usage includes renewables and non-renewables, and we adopt a twin-focused approach of Replace and Reduce. As at FY2021, our production processes utilise a notable proportion of renewable raw materials, accounting for 14.9% of our overall material usage. We also look to reduce the amount of non- renewables in our manufacturing processes, wherever practicable. We leverage technological innovation to not only develop alternative sustainable materials but also to reformulate products to become less material-intensive to produce. Reduce Replace Our policies and processes are developed in line with global standards such as ISO 9001:2015 and ISO 14001:2015. Additionally, in Nippon Paint China, we abide by our Green Procurement Principles that encourage the purchase of environmental-friendly raw materials, the re-use of materials, and the practice of less packaging. Wherever possible we procure unpackaged raw materials and have transition to the usage of reusable barrels and bags to minimise material consumption. We use Systems, Methods and Procedures (“SMP”) management systems to monitor our material usage efficiency – in particular tracking the usage of renewables and non-renewables. We then review our progress by comparing data collected against the organisational targets determined at the beginning of each year. We are in the midst of developing policies to incorporate material usage input from suppliers. As at FY2021, our production processes utilise a significant proportion of non-renewable raw materials, accounting for 85.1% Effective Energy and Emissions Management 30 NIPSEA LFG SUSTAINABILITY REPORT 2021PAINTING THE WAY FORWARD BEYOND COATINGS BEYOND ASIA 31 We currently use a combination of renewable (hydro turbines and solar panels) and non-renewable (petrol and diesel) sources of electric energy to power both operations-related and non-production related activities. NIPSEA Group, being a part of the chemicals manufacturing industry, recognises that a significant portion of our environmental footprint is constituted by greenhouse gas (“GHG”) emissions that stem from energy use. In seeking to improve energy efficiency, we adopt an integrated risk and opportunity approach in rethinking and reinventing process applications that occur in our manufacturing operations. Our actions are guided by the Green Plan, a whole-of-company movement to advance the agenda on sustainable development – Profit, People, Planet, and reduce both direct and indirect energy consumption within our business value chain. We strive to inculcate a culture of environmental responsibility in the Group to ensure that our energy conservation efforts go beyond regulatory compliance where possible through the following activities. Materials Used By Weight (Tonnes) 1,934,039 Non-renewable materials Renewable materials 11,019,755 We provide employee skills training in the area of design innovation and energy-related procurement topics ranging from machinery, tools and production equipment to enable proactive management of energy efficiency in current processes. We put in place programmes that keep track of electrical power consumed per equipment per unit of output. We set up an Independent Energy Management Committee to review and renew environmental work plans and targets every financial year. In addition, monthly management meetings discussing energy and emissions performances allow for quick course revisions, whenever necessary. We develop assessments that identify inefficient energy users across the facilities’ process chain. Depending on facility, we use Incoming Quality Control programmes to flag up such machinery or processes, and an annual capital expenditure budget is specifically set aside for capital upgrades or replacements. We communicate the energy conservation responsibilities of all employees, from executive to management levels, in complying with the measures and targets drafted. Skills Training Maintenance and Monitoring Programmes Management Reviews and Meetings Impact Assessments Clear Communication Activities DescriptionIn FY2021, our total energy consumption as a Group totalled 1,511,119.4 GJ, an increase of 31.1% as compared to the FY2020 measurement. This is due to a 34.1% increase in production volume from the previous year, together with the inclusion of new entities in this reporting year. On the other hand, our energy intensity ratio measured 253.1 MJ/tonne, which is a decrease of 2.3% from the FY2020. NIPSEA Group manages GHG emissions directly at the operating facilities under ISO 14001:2015 environmental management systems, where we carry out an environmental impact control check for GHG emissions at each stage of the product life cycle. We endeavour to minimise our emissions intensity where possible, such as by utilising battery-operated forklifts instead of diesel-powered ones. In FY2021, our Scope 1 and 2 GHG emissions totalled 242,325.0 tCO 2 e, an increase of 33.7% as compared to the FY2020 measurement, while our emissions intensity measured 40.6 kg CO 2 e/tonne, a decrease of 1.9%* as compared to the previous year. We also conduct Ambient Air Quality Monitoring to manage emissions through a systematic, long-term assessment of pollutants. Biannually, we measure and collect information on ambient air quality, stack emissions, VOCs level and chemicals emitted. We also installed air pollution control devices such as wet scrubbers, dust collectors, and spray paint booths to reduce the amount of chemical pollutants released into the air. Progressively, to develop energy-efficient solutions and reduce our overall emission levels, we will expand energy consumption monitoring activities to include buildings and more types of machinery used in key manufacturing. We project that through increasing the use of greener technology, adopting decentralised generation models, and optimising our production, we will be able to reduce our energy and emissions intensity by 20-30%. Concurrently, we are also developing plans to expand the role of solar in our energy mix and to increase the use of electric vehicles in our operations. We aim to reduce our energy intensity by 8% by 2025 against a 2021 baseline, with a yearly reduction target of 2%. Similarly, we also aim to reduce our emissions intensity (Scope 1 and 2) by 15% by 2025, with a yearly reduction target of 4%. In FY2021, our Scope 1 and 2 GHG emissions intensity measured 40.6 kgCO 2 e/ tonne, a decrease of as compared to the previous year. 1.9% * The emissions conversion factor used in FY2020 for one of the sub-entities under BETEK Turkey was amended to reflect a more reasonable representation for the emissions data. As a result, the FY2020’s Scope 1 and 2 GHG emissions should be revised to 184,038.1 tCO 2 e from 181,246.6 tCO 2 e in SR2020, while the FY2020’s emissions intensity should be revised to 41.4 kgCO 2 e/tonne from 40.6 kgCO 2 e/tonne in SR2020. 32 NIPSEA LFG SUSTAINABILITY REPORT 2021PAINTING THE WAY FORWARD BEYOND COATINGS BEYOND ASIA 33 NIPSEA Group recognises that water is an important raw material that not only powers machinery but is also used for general cleaning purposes in our manufacturing process. In FY2021, our total water consumption measured 2,074.1 megalitres, while our water consumption intensity measured 347.5 litres/tonne. We are continually looking into enhancing our water efficiency measures as part of our process optimisation and re-engineering efforts. NIPSEA Group adopts the 3Rs – Reduce, Reuse and Recycle – in the management of our water-related activities. We ensure that any wastewater that leaves our facilities is adequately treated to prevent environmental pollution to our operating surroundings. We also conduct checks such as soil testing around our sites to detect and mitigate potential pollution issues that arise from water seepage. Furthermore, spill kits and emergency response teams are readily on hand in the event of a chemical spill. Depending on the type of wastewater discharged we specify different wastewater discharge treatment requirements at our manufacturing sites. Responsible Water Management Reducing UsageEncouraging Reuse and Recycle Feedback System Internal communication and reporting systems are in place for employees to report any ideas or suggestions for improvement. Self-Initiated Campaigns Individual organisations are encouraged to initiate self- starter wider saving campaigns. Use of Management Systems and Regulations Under ISO14001:2015 and local laws such as the Sewerage and Drainage (Trade Effluent) Regulations in Singapore, we use Systems, Applications and Products (“SAP”) to monitor status of aspects such as machinery life cycle and water usage at consumption points across operation processes. Infrastructural areas that can improve water efficiency are identified and rectified on a priority basis. Leveraging Technology We adopt technology that uses ultra- violet light and reverse osmosis to filter Effluent Treatment Plant (“ETP”) water to be reused. Sewage Treatment Plant (“STP”) water is also recycled via the same process and used for gardening purposes. Coordination Amongst Facilities We facilitate close cooperation across different production plants to enable cross-production recycling activities. For example, the wastewater of the binder production facility can be used as the raw water for the formation of certain water-based paints. Wastewater that cannot be reused or recycled Such wastewater are disposed as industrial waste and collected by a licensed collector for further treatment in accordance with local laws. Wastewater that requires treatment before disposal Wastewater from lab basins are first treated in a dilution tank and tested by a third- party assessor, before they can be released as public sewage. Wastewater that can be disposed directly Wastewater from toilets and wash basins are linked directly to public sewage. Greenhouse Gas Emissions (tCO 2 e) Direct (Scope 1) GHG emissions Energy Indirect (Scope 2) GHG emissions 52,825.0189,500.034 NIPSEA LFG SUSTAINABILITY REPORT 2021PAINTING THE WAY FORWARD BEYOND COATINGS BEYOND ASIA 35 Holistic Waste ManagementEnvironmentally Friendly Supply Chain NIPSEA Group, being cognizant of the scale of our production in the region and our heavy dependence on chemicals, places great emphasis on waste disposal. We prioritise action in four areas as part of our long- term strategy for managing our hazardous and non-hazardous waste efficiently. Disposal Treatment Depending on the type of waste, different treatments are accorded. Recyclable materials such as metal and wooden pallets are reused and recycled by third-party contractors or done in-house. Other types of waste that cannot be recycled will be sent to landfills, composted or incinerated. Product Labelling We provide clear labelling on our end products that advises the proper disposal method after the product has left our premises. This is in addition to minimising waste generation throughout the product development cycle. Employee Awareness We design programmes that promote a Reduce, Reuse and Recycle mindset at work to cultivate a circular mentality amongst our employees. Checks and Awareness Under ISO:14001 and local waste disposal laws regulation, we conduct impact assessments to identify and track sources of waste generation to put in place procedures to manage them efficiently. Our monitoring processes track our waste generation and disposal efficiency in all our manufacturing plants. Yearly reviews are conducted to track our progress. Subsequently, we strive to improve efficiency through maintaining and upgrading our technology. We track three sets of data in particular: 1.Amount of waste generated 2.Efficiency rates of the treatment process 3. Amount of recyclable material regenerated As of FY2021, we generated 43,017.3 tonnes of waste material, out of which 24.3% was directed from disposal for reuse, recycling or energy recovery purposes and 75.7% was directed to disposal. Waste disposal methods employed include incineration, deposit at landfill or other methods such as waste sorting, fuel blending and disposal by the municipality. Currently, Nippon Paint China accounts for a significant proportion of the Group’s total waste generated, measuring 50.8% of the overall waste materials generated. To manage this effectively, we have an information management system that enables us to carry out environmental performance assessments and pollutant emission index forecasting to identify areas for improvement. The system also keeps us up to date with annual pollutant discharge statistics, coupled with an automated function to calculate environmental taxes, in accordance with the latest guidelines and information released by the Chinese government. We evaluate the effectiveness of our waste management programmes against targets that have been determined at the beginning of the financial year. Suggestions regarding improving our waste management processes will be implemented after a round of management meetings to review and develop action plans. Our Procurement department evaluates our suppliers on an annual basis. This supplier evaluation exercise includes an environmental assessment to ensure that they meet our required Standard Operating Procedures (“SOPs”) in managing environmental matters. In the event that suppliers fall short of the expectations we have of them, we provide solutions and guidance to help them improve their processes. In FY2021, we subjected 591 out of 1,466 new suppliers to environmental screening criteria, accounting for 40.3% of our new suppliers. On the other hand, we also subjected 568 out of 1,466 new suppliers to social screening criteria, accounting for 38.7% of our new suppliers. We also encourage our suppliers to attain additional accreditations by local advocacy groups that cover a wider range of green assessments that include water, material, and power management. NIPSEA Group remains committed to operating as a responsible business that is held to high standards and strives to create a positive impact on sustainable development. Our Supplier Code of Conduct, which outlines clear business conduct expectations for new and existing suppliers, ensures that our business partners uphold the same high standards that we do. The Supplier Code of Conduct covers three main areas: 1 2 3 Business Practices and Ethics Our standard corporate policies that focus on legal and regulatory compliance such as anti-corruption and fair competition laws. Environmental Regulation and Protection Our commitment to protecting and preserving a healthy and sustainable planet. Labour Practices and Human Rights Our commitment to human rights and equal opportunity in the workplace, amongst others. In FY2021, of new suppliers were subject to screening based on environmental criteria 40.3%Next >